Non-US Investing • Employer contributions to foreign pensions

Back when this mattered more to me, there seemed to be a relatively common view of foreign pension plans:

• If it is foreign, assume it is not qualified
• If you paid more into it than your employer, it is a foreign grantor trust, which is generally very bad news
• If you paid less into it than your employer (or nothing), it is an employee's trust and Forms 8621, 3520 and 3520-A will not bother you
• If you are a highly compensated employee, you get taxed on both vested earnings and contributions, otherwise you get taxed only on vested contributions. Distributions will get taxed accordingly
• If you are made to contribute by law, it might be covered by the social security clause of the tax treaty, depending on how social security is defined by the tax treaty.

Or something like that. If you look for "402(b) foreign pension" you will likely find more reliable sources on this.

Statistics: Posted by Lazerr — Sun Apr 28, 2024 5:44 am — Replies 4 — Views 530

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